Australia Market falls 0.14%

The Australia stock market closed lower on first trading session of week and month, Monday, 3 September 2018, as risk sentiments muted after reports that U.S.-Canada trade talks ended with no deal and data showed China's manufacturing sector recorded the weakest growth in 14 months in August. The benchmark S&P/ASX200 index ended the day down 8.6 points, or 0.14%, at 6,310.9 points, while the broader All Ordinaries was down 11.3 points, or 0.18%, to 6,416.5 points.

Shares of materials and resources declined on renewed trade tensions between the world's two biggest economies, the US and China. Fortescue Metals fell 4.2% to A$3.68 while BHP Billiton shares closed 0.5% lower at A$33.03 and Rio Tinto fell 1.4% to A$71.76.

 

Northern Star Resources lifted 16.7% to a record high of $8.12 after its shares resumed trading after the gold miner raised the cash to buy the A$347 million Pogo underground gold mine in Alaska. The miner raised its gold output guidance for the 2019 financial year from between 600,000 and 640,000 ounces, to between 850,000 and 900,000 ounces.

Financial stocks were lower with ANZ leading falls, down 1% to A$29.21, while Bendigo and Adelaide Bank dropped 2.8% to A$11.27 after trading ex-dividend. Suncorp shares slipped 0.3% to A$15.44 after raising mortgage rates on Friday.

Shares of telecommunications sector closed mixed, with Speedcast International advancing 7.3% to A$4.55 on bargain hunting, while Telstra shares fell 2.3% to A$3.03. TPG Telecom shares fell 2.9% to A$8.40 on reports that internet service provider and NBN rival, Uniti would fast-track its expansion into Sydney.

ECONOMIC NEWS: Australia manufacturing sector growth quickens up in August-- Latest survey results from the Commonwealth Bank showed Australia's manufacturing sector grew at a faster pace but the pace of growth was slower compared with historical averages. Seasonally adjusted Commonwealth Bank Purchasing Managers' Index increased to 53.2 in August, from 52.4 in July.

CURRENCY NEWS: The Australian dollar was lower against the U.S. dollar on Monday, after trade talks between Canada and the United States ended on a sour note. The Aussie dollar was at 71.9 US cents, its lowest level since the start of 2017, down from 72.53 US cents on Friday; 79.75 Japanese yen, from 55.71; 61.98 euro cents, from 62.10; 55.66 British pence, from 55.71; and 108.77 NZ cents, from 109.13.

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